Preview

Burt's Bees Case Analysis

Better Essays
Open Document
Open Document
1754 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Burt's Bees Case Analysis
Introduction Burt’s Bees case is a follow up for the case about Roxanne Quimby, an entrepreneur who started Burt’s Bees together with Burt Shavitz and managed to create a considerably big company almost from nothing. The objective of the first case was to make a suggestion whether the company should relocate its production from Maine to North Carolina and use its full potential, or stay in Maine and operate with limited growth potential. As the second case indicates, it is obvious that Quimby decided to expand company’s operations by moving to North Carolina while the company’s revenues were projected to be between $6 million and $8 million. Quimby’s current intentions are to expand its operations to a level that is going to allow Burt’s Bees to have more than $25 million in sales which Quimby thinks is sufficient to sell the company to a bigger market participant. The dilemma that Quimby currently faces is how to expand company’s operations in order to make Burt’s Bees attractive for a potential buyer. This is why the objective of this case is to make a decision whether retail would be the best route to $25 million sales and to suggest how Burt’s Bees would enter the market that is already crowded. Moreover, the case asks to provide an alternative to retail if retail is proven not to be the best strategy available to Burt’s Bees.

Analysis Burt’s Bees’ early success, while the company was still located in Guilford, Maine, was attributed to Roxanne Quimby’s entrepreneurial skills and her desire to capitalize on the opportunity that she saw in the market. However, by 1994 she noticed that the future potential of her company would be limited if she decided to stay in Maine because of high transportation costs and the lack of associates that had enough relevant experience in the industry. Quimby’s decision to move the company to North Carolina overcame the obstacles that prevented Burt’s Bees from making more money while the company was forced to substantially

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Burt's Bees Case Study

    • 323 Words
    • 1 Page

    The Clorox acquisition has many risk that Burt’s Bees reviewed and analyzed, with the biggest risk is Burt’s Bees not keeping up with the sustainability goal. Clorox has many employees than Burt’s Bees and the goal is 100% employee engagement. Those Clorox employees may not be used to the non option program and it may take time to have them incorporate this program. On the other hand the great opportunity of this acquisition is that when Clorox incorporates these same goals into their company, the environment will much cleaner from all the “no waste” goal. If the 100% employee engagement from both companies in this goal, you will have so many good volunteers outside the company and it will trickle down to the children of today. If all would take the goal in their personal lives the world would be a better place for our children and theirs to come.…

    • 323 Words
    • 1 Page
    Satisfactory Essays
  • Powerful Essays

    Mg 495 Week 3 Case Study

    • 4356 Words
    • 18 Pages

    CASE 35 – CHURCH & DWIGHT: TIME TO RETHINK THE PORTFOLIO? I. INTRODUCTION A. EXECUTIVE SUMMARY 1. Summary statement of the problem: Church & Dwight, more commonly known by its brand name “Arm & Hammer,” has held a commanding lead in the sodium bicarbonate product market for over 160 years with virtually 99 percent of all consumer products in households within the United States. However, in order to promote growth and diversity while maintaining a steady profitability rate of 3-5 percent per year, the company has expanded uses of sodium bicarbonate products so that it is no longer the sole focus. In fact, the acquisition of a diverse group of consumer products in international markets has been viewed as a viable option to sustain the profitability margins well into the 21st century. (Wheelen & Hunger, p. 35-12, 2012). 2. Summary statement of the recommended solution: The relatively small company, as compared to competitors in household and personal care product markets must recognize the challenges of growing sales through acquisitions to promote growth and competitiveness within those markets, Church & Dwight must incorporate additional acquisitions of solid brands and products in order to grow market share through an expansion of product lines into a variety of “personal care, deodorizing and cleaning, and laundry products” as well as “specialty chemicals, animal nutrition, and specialty cleaners” (Wheelen & Hunger, p. 35-6, 2012). In addition, to maintain its position in the world market place, Church & Dwight must expand into international markets and gain footholds in product markets through acquisition of…

    • 4356 Words
    • 18 Pages
    Powerful Essays
  • Better Essays

    Gb519 Unit 4 Paper

    • 937 Words
    • 4 Pages

    The founder and CEO of EBI recently received a proposal from the vice president of Great Deal, Inc. (GDI), a large discount retailer. The vice president proposed a joint venture between his company and EBI, citing the growing demand for organic products and the superior distribution channels of his organization. Under this venture EBI would make some minor changes to the manufacturing process of some of its best-selling baby foods, which would then be packaged and sold by GDI. Under the agreement, EBI would receive $3.10 per jar of baby food and would provide GDI a limited right to advertise the product as manufactured for Great Deal by EBI. Initial calculations determined that the direct materials, direct labor, and other variable costs needed for the GDI order would be about $2 per unit as compared to the full cost of $3 (materials, labor, and overhead) for the equivalent EBI product. The CEO must decide whether or not to accept the proposed venture from…

    • 937 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    Case Brief Trader Joes

    • 659 Words
    • 2 Pages

    Trader Joe’s, originally a local Californian chain store that offers uncommon groceries at low prices and that focus on a niche market of cultured and urbane clientele had a cautious growth during its first years and after it was acquired by a family that owned one of Germany’s most successful grocery chains expanded to 414 locations nationwide by 2013. With all that success, some grocery business competitors arose trying to compete. Even though experts estimate that the company has a higher return of investment than other supermarkets, there is a question if the company will be able to sustain its expansion without losing its charm effect. After reading the article there are some key strategic issues that must be addressed to keep Trader Joe’s expansion and survival.…

    • 659 Words
    • 2 Pages
    Powerful Essays
  • Powerful Essays

    South Delaware Coors

    • 1201 Words
    • 5 Pages

    The purpose of this case is to analyze Larry Brownlow’s decision to invest and operate a Coors Distributor in south Delaware. Coors Beer is located in Golden, Colorado and has many distributors that are monitored closely throughout the country. Coors is known for its dedication to quality by suppliers, wholesalers, and its customers. Not only does Coors monitor wholesalers and distributors, the company also requires that the wholesaler and distributor us recycling equipment. Mr. Brownlow had $15,000 to research the decision and decide if he should own the South Delaware Distribution Center. $800,000 is needed for initial investment of the distributor. Since Coors will enter this area for the first time, it is believed that market share will continue to grow as the brand becomes established over time.…

    • 1201 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Grocery shopping is more diversified and evolved than ever before. Individuals across the nation have access to everything from exotic products to unique delivery services. Often, specialty stores have limited locations whereas specialty services have a limited reach. However, two retailers have expanded to hundreds of locations while adhering to unexpected market positioning for previously untargeted market segments. Whole Foods Market and Trader Joe’s have become household names while also innovating beyond regional and national traditional chains. Despite comparable size in terms of locations, each store’s growth has operated using a very different model. This document will address the various facets for both Whole Foods Market and Trader Joe’s in order to understand how each business model has won a piece of the market pie and share of wallet. Whole Foods Market Background and History In 1978, John Mackey had a vision to build a store that would meet his desire for whole, natural foods as part of the movement away from artificial, processed foods. Mackey was a college dropout, but against all odds he was able to borrow $45,000 in capital financing and open his first store for what would become Whole Foods in Austin, Texas.1 By all accounts it has been an incredible success and the most recent annual report (2009) reveals that there are 284 stores across most of the United States with a handful in Canada and Great Britain.2…

    • 5247 Words
    • 21 Pages
    Good Essays
  • Satisfactory Essays

    The main challenge is to determine how Panera Bread can continue to achieve high growth rates in the future. Panera Bread is operating in an extremely high competitive restaurant market which forces the company to improve and to grow steadily for staying profitable. The company’s mission statement of putting “a loaf of bread in every arm” is just underlying Panera’s commitment for growing. They are now in a good financial situation and facing growth rates of up to 20% per year in a niche market that has a great growth potential. In the next 7 years the fast-casual market is expected to grow by 500% in sales to a total of $30 billion.…

    • 804 Words
    • 4 Pages
    Satisfactory Essays
  • Better Essays

    Dannon Case Study

    • 2170 Words
    • 9 Pages

    When this case was written, Danone’s global business focus was on fresh dairy (Activia yogurt), bottled water (Evian), medical nutrition, and baby nutrition. Danone viewed the United States as an emerging market for yogurt, thus Dannon’s marketing efforts needed to focus on growing U.S. yogurt consumption and expanding the category, while also growing its brand. (Marquis, p.1)…

    • 2170 Words
    • 9 Pages
    Better Essays
  • Satisfactory Essays

    Case 24

    • 307 Words
    • 2 Pages

    4. Is Norton Lilly’s competitive strategy working well? What does the information in case Exhibits 1 and…

    • 307 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    The complaint alleged that the business plan of Covis enterprise was that it would try to sell itself or its assets soon after developing a market in the pharmaceuticals that it acquired. Based on that description, merger discussions and negotiations were to be expected by Plaintiffs. Therefore, the pendency of merger negotiations thus signaled no more than the Covis enterprise’s continued adherence to its announced corporate…

    • 650 Words
    • 3 Pages
    Powerful Essays
  • Satisfactory Essays

    The Marketing Manager of Lucas Foods must decide on a marketing strategy for Gold Medal Crumpettes that will best capture the available market opportunities and support the company's mission, The product is in the beginning of the life cycle and is a success in Alberta. The problem is whether Lucas Foods should maintain the products existing geographic coverage, or should it expand?…

    • 309 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    In this case, that Neal Middleton is trying to decide why Golden Valley Foods, inc., isn’t as profitable as it once was. I would suggest to Neil Middleton to do a big change in the company’s policy, and do market segmentation. Golden Valley Foods has a line-forcing policy, requiring any store that wants to carry its brand name to carry most of 65 items in the Golden Valley Foods line. This policy, resulted in a decreasing in its sales. Unfortunately, smaller stores are not generally to accept the Golden Valley Foods policy. Then most of their sales come from major supermarket chain store such as Safeway, Kroger, and A$P. According to the last president of the company said “The influence of our old parent company is still with us. As long as new products look like they will increase the company’s sales volume, they are introduced. traditionally, there has been little, if any, attention paid to margins. we are well aware that profits will come through good products produced in large volume.”…

    • 281 Words
    • 1 Page
    Satisfactory Essays
  • Satisfactory Essays

    mgmt274

    • 353 Words
    • 2 Pages

    Please be advised that our Research and Case Analysis No. 1 (10%) will be on Costco Wholesale Corporation, the case material for which is to be found at pages 2 to 21 of the prescribed casebook for the course. The case is entitled, “Costco Wholesale in 2012: Mission, Business Model, and Strategy”. I am aware of the fact that the Bookstore has apparently not ordered any copies of the casebook. This being the case, and in recognition of the fact that our case analysis assignments are scheduled to begin next week, I suggest that colleagues access the 2007 version of the case from the Internet, the link to which is:…

    • 353 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    CH 05

    • 2998 Words
    • 20 Pages

    relationship at issue, the need to generate a profit, the uncertainty of the marketplace, and the…

    • 2998 Words
    • 20 Pages
    Powerful Essays
  • Good Essays

    Drink-at-Home, Inc

    • 793 Words
    • 4 Pages

    CASE 2: DRINK-AT-HOME, INC. Drink-At-Home, Inc. (DAH, Inc.), develops, processes, and markets mixes to be used in nonalcoholic cocktails and mixed drinks for home consumption. Mrs. Lee, who is in charge of research and development at DAH, Inc., this morning notified Mr. Dick Jones, the president, that exciting developments in the research and development section indicate that a new beverage, an instant pina colada, should be possible because of a new way to process and preserve coconut. Mrs. Lee is recommending a major program to develop the pina colada. She estimates that expenditure on the development may be as much as $100,000 and that as much as a year's work may be required. In the discussion with Mr. Jones, she indicated that she thought the possibility of her outstanding people successfully developing such a drink now that she'd done all the really important work was in the neighborhood of 90 percent. She also felt that the likelihood of a competing company developing a similar product in 12 months was 80 percent. Mr. Jones is strictly a bottom line guy and is concerned about the sales volume of such a beverage. Consequently, Mr. Jones talked to Mr. Besnette, his market research manager, whose specialty is new product evaluation, and was advised that a market existed for an instant pina colada, but was some-what dependent on acceptance by both grocery stores and retail liquor stores. Mr. Besnette also indicated that the sales reports indicate that other firms are considering a line of tropical drinks. If other firms should develop a competing beverage the market would, of course, be split among them. Mr. Jones pressed Mr. Besnette to make future sales estimates for various possibilities and to indicate the present (discounted value of future profits) value. Mr. Besnette provided Table 1. Mr. Besnette's figures did not include (1) cost of research and development, (2) cost of new production equipment, or (3) cost of introducing the pina colada. The cost of…

    • 793 Words
    • 4 Pages
    Good Essays

Related Topics